CPF Easy Info Thread. :)

[a4973]

i know my england very jialat. at least i know there are some people out there that understands england as i do

No lah dork, not saying your England jialat but am saying to everyone why overthink the matter when just following the linked FAQ Para 2 should be the correct way. Ie inflow interest start next month, outflow interest not counted this month onwards.

 

[reddevil0728]

No lah dork, not saying your England jialat but am saying to everyone why overthink the matter when just following the linked FAQ Para 2 should be the correct way. Ie inflow interest start next month, outflow interest not counted this month onwards.

totally agree. just dunno why people say that = lowest balance of the month

 

[fr33d0m]

the government should consider raising CPF OA interest rate seriously, otherwise, a lot of transactions are unnecessary and a pure waste of time and money.

In the end, the CPF board will redeem special SGS and the government will issue short term SGS for it. At the same time, the financial market is distorted.

 

[reddevil0728]

the government should consider raising CPF OA interest rate seriously, otherwise, a lot of transactions are unnecessary and a pure waste of time and money.

In the end, the CPF board will redeem special SGS and the government will issue short term SGS for it. At the same time, the financial market is distorted.

HDB loan...... cannot look at things in isolation

 

[lzydata]

HDB loan...... cannot look at things in isolation

Interesting new development...

With the new interest rate floor, the eligible amount of HDB's concessionary housing loan will be computed using 3 per cent per annum or 0.1 percentage point above the prevailing CPF Ordinary Account interest rate, whichever is higher.

However, there will be no impact to existing applications received by HDB before this time. It will also not affect the actual HDB concessionary interest rate, which will remain at 2.6 per cent per annum.

https://www.channelnewsasia.com/sin...ts-tightened-loan-value-limit-lowered-2974776

 

[item2sell]

Interesting new development...

With the new interest rate floor, the eligible amount of HDB's concessionary housing loan will be computed using 3 per cent per annum or 0.1 percentage point above the prevailing CPF Ordinary Account interest rate, whichever is higher.

However, there will be no impact to existing applications received by HDB before this time. It will also not affect the actual HDB concessionary interest rate, which will remain at 2.6 per cent per annum.

https://www.channelnewsasia.com/sin...ts-tightened-loan-value-limit-lowered-2974776

So, when gov feels like it, can decouple 0.1%

 

[reddevil0728]

So, when gov feels like it, can decouple 0.1%

Ya of course they government ma.

parliamentary sovereignty, doesn’t only happen in Singapore

 

[item2sell]

Ya of course they government ma.

parliamentary sovereignty, doesn’t only happen in Singapore

its good. The 2.5% interest will stay (and penalize the savers)

Oct, I will get the 1 year TBills with OA

 

[reddevil0728]

its good. The 2.5% interest will stay (and penalize the savers)

Oct, I will get the 1 year TBills with OA

is not penalise the savers. more of penalise those who don't care

 

[chiokcc]

With interest rate going up, is it better to pay off housing loan using OA in one full shot if there is sufficient fund?

 

[reddevil0728]

With interest rate going up, is it better to pay off housing loan using OA in one full shot if there is sufficient fund?

the question is, is it going to be going up/stay high for the entire duration of you remaining loan tenor?

 

[chiokcc]

the question is, is it going to be going up/stay high for the entire duration of you remaining loan tenor?

10 years horizon, difficult to tell ......

 

[reddevil0728]

10 years horizon, difficult to tell ......

ya lor. that's why.

you are on HDB loan?

 

[chiokcc]

ya lor. that's why.

you are on HDB loan?

No. I am asking as a few persons I know are on bank loans for their housing.

My advice was to check with their financial advisors, but my first reaction was "if you have sufficient in OA, maybe good to see if it makes sense to clear the loan one shot" now.....

 

[reddevil0728]

No. I am asking as a few persons I know are on bank loans for their housing.

My advice was to check with their financial advisors, but my first reaction was "if you have sufficient in OA, maybe good to see if it makes sense to clear the loan one shot" now.....

it might. but then again it still depends on your view about the interest rate direction in the long term.

cause so long as you don't over stretch, housing loan is something that can be considered a good debt to be taken more and longer.

if you clear it too fast and interest rates go back down, then you are closing the door to that.

in any case, for bank loans while in locked in also can't really pay down without penalty. so guess unless you are at the stage where you have to make decision, can KIV first.

also can always consider doing partial rather than full

 

[chiokcc]

it might. but then again it still depends on your view about the interest rate direction in the long term.

cause so long as you don't over stretch, housing loan is something that can be considered a good debt to be taken more and longer.

if you clear it too fast and interest rates go back down, then you are closing the door to that.

in any case, for bank loans while in locked in also can't really pay down without penalty. so guess unless you are at the stage where you have to make decision, can KIV first.

also can always consider doing partial rather than full

Yar, also depends on individual actual financial status, which is not good of me to dig further ....

But I am more "conservative", if I can be loan free, I will go for clearing one shot if I have no use of my OA and not retiring in another 15 years .....

 

[reddevil0728]

Yar, also depends on individual actual financial status, which is not good of me to dig further ....

But I am more "conservative", if I can be loan free, I will go for clearing one shot if I have no use of my OA and not retiring in another 15 years .....

alternative is to "accelerate" the pay down. so dun have to do either extremes

 

[chiokcc]

alternative is to "accelerate" the pay down. so dun have to do either extremes

Arh, pay more every month and shorten loan by a few years ....

 

[Okenba]

Yar, also depends on individual actual financial status, which is not good of me to dig further ....

But I am more "conservative", if I can be loan free, I will go for clearing one shot if I have no use of my OA and not retiring in another 15 years .....

If interest rate rises above OA interest, paying first will earn the difference.
If it is private property (not HDB), can always consider taking out a home equity loan later when interest rates go down again.

 

[dork32]

If interest rate rises above OA interest, paying first will earn the difference.

for me it is if interest rate rises above risk free investment rate......

for many years, risk free investment rate = oa interest.

now risk free investment = tbills yield.

equity loan a bit more tricky than normal home loan. home loan can use oa to pay. equity loan must use cash. if you are before 55, then equity loan is not risk free, another home loan would be risk free